Carlton Industries Has Identified the Following Items and Would Like

question 122

Multiple Choice

Carlton Industries has identified the following items and would like you to answer a few questions about their effect on Stockholders' Equity.
-Which item is recorded as Additional Paid-In Capital - Preferred Stock?

• A)Preferred stock issued by Carlton
• B)Amount received by Carlton in excess of par value when preferred stock was issued
• C)Dividends in arrears on Carlton preferred stock
• D)Cash dividend declared but unpaid on Carlton stock
• E)Stock dividend declared but unissued by Carlton
• F)Treasury stock
• G)Amount received in excess of cost when treasury stock is reissued by MJ
• H)Retained earnings

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Definitions:

Authorized

Officially permitted or endowed with legal power or right by a legal or regulatory body.

Corporate Securities

Financial instruments such as stocks and bonds issued by corporations to raise capital, representing ownership or debt obligations.

Articles of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation.

Incorporator

The person or entity that files the articles of incorporation, officially forming a corporation with the state.